Yesterday, the American Hospital Association (AHA), the Association of American
Medical Colleges (AAMC) and America’s Essential Hospitals filed a lawsuit
against the U.S. Department of Health and Human Services (HHS) in the U.S.
District Court for the District of Columbia to prevent significant Medicare
payment cuts for hospitals that participate in the 340B Drug Pricing
Program. The three hospital associations are joined in the suit by hospital
plaintiffs: Eastern Maine Healthcare Systems, in Brewer, Maine; Henry Ford
Health System, in Detroit; and Park Ridge Health, in Hendersonville, North
Carolina, part of Adventist Health System.

For 25 years, the 340B program has enabled hospitals and other
organizations that care for many low-income and uninsured patients to
purchase certain outpatient drugs from pharmaceutical manufacturers at
discounted prices. The program allows participating hospitals to use the
savings from the discounts to provide an expanded range of comprehensive
health...

Kentucky’s Insurance Commissioner filed a lawsuit on May 13 in Franklin Circuit Court against the company originally hired to process and pay claims for the now-defunct Kentucky Health Cooperative (Co-op). The suit contends that CGI Technologies and Solutions, Inc. was grossly negligent in processing and paying claims and that it breached the contract it had with the Co-op.

The Co-op was created in 2012 under provisions of the Affordable Care Act to provide health insurance coverage to Kentuckians. After suffering severe financial losses, the Co-op was placed in rehabilitation in 2015 and, after further investigation, was placed into liquidation early this year when it was determined that the Co-op would never recover from its deep deficit.

Insurance Commissioner Brian Maynard filed the lawsuit in his capacity as the Co-op’s court-appointed liquidator. “We have a duty to investigate the causes of the Co-op’s collapse and to hold responsible those individuals who caused the collapse,” Maynard...